Gold prices are hovering at four-week lows and market participants are waiting for a direction, which it will get after the ECB policy meet scheduled today. Market has already factored in a rate cut although the comments from the ECB governor Draghi and his stance on the easing tools used (if any) will be important to watch for. Next week also will be important for the market participants following the Fed policy meeting.
Base metals pack traded mixed as optimism from a decision by Beijing to exempt some US goods from additional tariffs, potentially easing tensions outweigh concerns over China’s economic outlook after a sharp fall in Chinese auto sales underlined fears of weaker demand. China’s total auto sales fell 6.9% from the same month a year earlier to 1.96 million.
Crude traded mixed on account of mixed news of Inventories data and news of easing of sanctions on Iran. Prices were also lifted by easing of trade tensions between US and China after China moved to exempt some US anti-cancer drugs from tariffs, while President Trump announced delay to tariff hikes on billions of dollars’ worth of Chinese goods
Motilal Oswal Financial Services lists how different commodities may trade in the second half of the session today.
MCX Gold has intraday support at Rs.37750 whereas resistance is at Rs.38180. Gold is likely to trade sideways to negative for the day. Price sustainability below immediate support of Rs.37750 will take price towards next support of Rs.37600.
Gold $ (SPOT)
Critical resistance for Spot Gold is placed at $1520 whereas support is at $1480. Bias is likely to remain sideways for the day.
MCX Silver has intraday support at Rs.47200 whereas resistance is at Rs.48020. Sideways momentum is expected for the day. Price break of the given range will confirm further direction in trend.
Silver $ (SPOT)
Spot Silver has support at $17.80 and resistance is at $18.50. Sideways momentum is expected for the day.
MCX Copper price is expected to trade positive for the day with an intraday support of Rs.452 and is likely to face resistance at Rs.458 level. Buying on dip is recommended targeting resistance level of Rs.458 – 460.
MCX Nickel is likely to trade sideways to positive with an intraday support of Rs.1250 and resistance of Rs.1290 level. Price sustainability above immediate resistance of Rs.1290 will give further momentum to price towards Rs.1305.
MCX Crude Oil
MCX Crude Oil is likely to trade sideways to negative with an intraday support at Rs.3900; whereas resistance is at Rs.4020 level. Selling on rise is recommended targeting support level of Rs.3900 – 3870 levels.
MCX Natural Gas
MCX Natural Gas has immediate intraday support at Rs.177; whereas resistance is at Rs.183 levels. Momentum is likely to remain sideways to negative for the day.
MCX Lead price is expected to trade sideways with intraday support at Rs.152 and resistance at Rs.156.
MCX Zinc price is expected to trade sideways to positive with resistance at Rs.189 while support is at Rs.184 level.
MCX Aluminium (Delivery Contract)
MCX Aluminium price is expected to trade sideways to positive for the day with resistance at Rs.141.50 while support at Rs.139.20 level.